Cooper Standard Adopts Rights Agreement to Protect $215 Million in Tax Benefits
Cooper Standard Holdings Inc. (NYSE: CPS) has adopted a tax benefits preservation plan, commonly known as a 'poison pill,' to protect its significant net operating loss carryforwards. As of September 30, 2026, the company estimates its U.S. Tax Benefits at approximately $215 million, which are intended to offset future taxable income. The Rights Agreement is designed to prevent an 'ownership change' under Section 382 of the Internal Revenue Code, which could severely limit or delay the use of these tax assets. The plan acts as a deterrent against any individual or group acquiring 4.9% or more of the company's common stock without Board approval. If triggered, existing shareholders (excluding the acquiring party) would be entitled to purchase shares at a 50% discount.